Milwaukee's Shops of Grand Avenue to be auctioned off

Downtown Milwaukee’s Shops of Grand Avenue — sold nine years ago for nearly $32 million — is going on the auction block with an opening bid that’s around 15% of that 2005 purchase price. »Read Full Article

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Malls are in financial trouble nationwide. Construction of new enclosed malls peaked in the mid 1980s. I read an article on Yahoo News Monday (May 12) about how the financial issues leading Sears and Penny's to close stores, often both at the same mall, is leading to specialty stores closing up when their leases come up for renewal.

Sounds a lot like what happened at Northridge. First the Gimbel's building struggled to retain a tenant. Although Gimbel's Midwest (Milwaukee metro area-Madison-Appleton) was profitable, the other divisions were not. So corporate owner BATUS pulled the plug in 1996. This led to some Gimble's converting to Marshall Field's, which was also owned by BATUS. However, Field's was a step up from Gimbel's and the Milwaukee Market just could not handle four Field's stores.

Then the Field's stores at Northride and Southridge were taken over by Sheboygan-based Prange's. However, by the time that occurred Prange's was in deep debt from construction of a replacement store in downtown Sheboygan and a new store at the Fox River Mall in Appleton. Unable to get financing to purchase crucial Christmas selling season merchandise, Prange's filed for Chapter 11 reorganization and was acquired by Des Moines-based Younkers. In time Younkers through mergers Younkers and Boston Store were sister store. The corporate parent closed stores at Northridge, Southridge, East Towne (Madison), West Towne (Madison) and The Avenue (Appleton) as a result.

This happened as traffic inside Northridge was falling. As a result first the theaters closed when United Artists Theaters existed the Milwaukee Market. Next Younker's closed. Then the specialty stores started bolting. Soon other department stores at Northridge started closing, too.

Not much hope for the Grand Ave. Downtown Malls nationwide have been a failure. Green Bay's Port Plaza was torn down a few years ago. Appleton's The Avenue has been turned into an office building.

Thee is one big cash cow at the Grand Avenue. It's the parking ramp. High parking fees mean big income for the for-profit company which operates the ramp. Add to that fees paid by UWM and the YMCA for student and member parking.

The problem for the Grand Avenue is the parking ramp really does not flow to the owner or operator of the mall. The other problem is the parking ramp is the only cash cow for the mall. The high parking fees and limited discounts for mall purchases actually chase away potential customers. That's not just those specifically going to the mall to shop, but also those who walk through the mall on the way to events at the convention center, Milwaukee Arena, Milwaukee Theater, BMO Harris Bradley Center, conferences at the Hyatt, and other downtown events.

There was a time when all-day parking at the Grand Avenue ramps was a bargain and w as a great place to park to attend Summerfest via the Wisconsin Avenue shuttle. If I recall Ronald Reagan was president them.

This is sad. So much was invested in the third ward during the last 15 years it really took the business away from Wisconsin Avenue and the Grand Ave Mall. The third ward looks great whereas Wisconsin avenue looks awful. They keep reconstructing Wisconsin ave over and over and over again. Watch out when parking on Wisconsin ave. The tow trucks are there waiting for their 3pm haul when anyone at meters must leave or they will be towed. Welcome to Milwaukee and the wrath of the money making parking patrol.

I do not see anything in the article about a government subsidy for the mall itself. I do see plenty of private business ownership, albeit a failing business operation and an outdated business plan.

The Boston Store/BonTon building is also privately owned. However, a city subsidy is propping up the downtown store. There are many people employed there. The downtown Boston store may be serving downtown employees and downtown residents, but it is an outdated business idea.

As for using the Grand Avenue Mall and Boston Store site for the new arena, it's an intriguing idea. Problem is the former Gimbel's/Marshall Field's and Plankington Arcade buildings are considered historic and thus saved from the wrecking ball. Not sure if the parking ramp, "new" arcade, Boston Store and other buildings provide enough footprint for an arena which meets NBA specs. Also need to consider traffic and access to/from freeways. That points to Park East corridor or current BMO Harris Bradley Center site and area to the north (former MATC satellite building).

I'm surprised no one is blaming the freeways for the problems at Grand Avenue. Normally someone would chip in with something like: "794 is a visual barrier for those people who shop at Grand Avenue, so let's tear it down."

No mention of the elephant in the room that has contributed to Grand Ave's downfall...crime. Like Northridge...crime grew, national retailers pulled out, and a slow decay began. I worked at Boston Store corporate for 5 years, and was in the mall almost every day in the early 90's...crime led to the slow loss of a consumer willing to shop downtown and spend money when the suburbs offered an easier and safer shopping experience. As well...the original plan for Grand Ave was to have all of the 1st floor stores open to access from Wisconsin Ave. That never happened because it was harder to control theft out of 2 exits...easier to control by only opening the mall entrances. Grand Ave was a good idea...but was doomed from the beginning.

I think there are two problems with MKE specifically. Contrary to many opinions of the clowns on here that have never lived outside of WI, downtown malls can thrive with adequate public transportation from outlying suburbs. Boston, Chicago, NY, DC (by way of Crystal City), Houston, Dallas, Denver, LA, San Diego, Seattle, Portland, SLC...should I keep going? What each of these cities have in common is multiple means of low cost transportation providing access to shopping centers. Anyone can access these malls from seemingly distant outer suburbs and will willingly do so if they don't have to pay for gas, parking, and headaches.

Secondly the downtown area is too burned out to provide any incentive to travel there in the first place. As I've lived in three of the cities I mentioned above (plus MKE), what they all have in common is a thriving surrounding neighborhood. MKE simply doesn't have that as it's been on the downturn since the early 90s. There aren't dozens of restaurants, surrounding shops, etc. that would attract a suburban shopper into the busy downtown area for reasons other than shopping, so why would someone leave the north (Bayshore) or west (Mayfair, Brookfield Sq.) if he didn't have to? This is a simple problem of economics and the city, as well as private enterprise, has to nail a means of people wanting to come downtown.

Sentimentally, I will miss Grand Ave. I remember heading downtown near the holdiays and has a ton of fun shopping and walking around downtown with my family. I realize that folks on this board are afraid of the non-heartlandly hued, so they are beyond help, but I'll still miss it.

Tourists? Where are these so called tourists? Compared to the cities above MKE is obviously a bigger draw.

Setting aside the imaginary tourists, the loop will not solve anything and I never said it would. Please refer to the transit maps for every single city I mentioned. The problem with MKE is that downtown is vacant and no one will be drawn in from the 'burbs no matter how convenient the system might be.

Low cost public what? Oh please. The location is terrible. Parking is terrible. The stores themselves are terrible. Let's look at the first issue. You're in pretty much a business district. Lots of lawyers and offices. After 5:00pm, they're gone and you have a lot of "unique" people coming out of the woodwork. None have the incomes required to support a mall. With this group you also have criminal issues or at least perceptions. There isn't a single item in any of those stores, I can't find at Brookfield Square or Bayshore. Parking is free and easy. And when I'm shopping, if I'm going to buy a suit or expensive jewelry, do you really think, I'm going to ride a bus or tram? Really? I drive as do the people with money you need to fill your coffers. No parking, no sale...

1) Re: "pretty much a business district". Same thing in BOS (where I currently live), DC, HOU, DAL, DEN, CHI...again, should I keep going? Yet major malls in each of these cities have somehow managed to survive despite your assessment of the situation that is based on...one city.

2) "Unique people." Just come out and say you're afraid of the non-heartlandly hued.

3) Re: "buy an expensive suit or jewelry" comment...people do it in every city mentioned above every day multiple times per year. Here in Boston I could go from Cambridge to the Back Bay in ten minutes for $2, not pay $40 for parking, eat, drink, and buy a suit...and return to Cambridge for $2. As the overwhelming majority of these area residents use public transportation where available, you're on shaky ground with "WELL I WOULDN'T"!!! Please see the parking statistics and ridership details for outlying T stations, West Falls Church Metro, Red Line Houston, and SLC transit numbers going in and out of the commercial areas during post-rush hour and weekend times. These are in cities not in WI by the way.

I agree with the stores and the surrounding area being desolate. That's the whole point! Let's assume (and it's a fair assumption) that MKE never gets decent public transportation. You're absolutely right that there is no reason to drive into the city when you have what you need in the burbs. I completely agree with that statement. Downtown is burned out and needs some "hook" to draw people there besides a mall. Tysons, Galleria, Copley, Pentagon City, Water Towers, City Creek, Gateway all have hooks (i.e. restaurants, small businesses, salons, bars, clubs, galleries, etc.)...something to get people downtown for something other than shopping.

4) I think your position is based on your location somewhere in Waukesha county where the seas of white are ablaze and well over a phalanx of 4x4 white tanks.